New Jersey continues to have some of the highest property taxes in the country, with the average homeowner paying $10,095 in 2024, according to recent state data. This figure exceeds the $10,000 cap set by the federal government in 2018 for deductions on state and local property taxes—commonly referred to as the SALT deduction.
The high property tax rates are not unexpected given New Jersey’s location between major metropolitan areas like New York City and Philadelphia. Supporters point out that these taxes help fund quality schools, access to universities and talent pools, as well as key transportation infrastructure such as Newark’s ports, Interstate 95, and several busy airports.
Marc Pfeiffer, a senior policy fellow at Rutgers University’s Bloustein School of Planning and Public Policy who studies local government in New Jersey, explained that many towns with higher property taxes often lack other sources of revenue such as businesses or corporate headquarters. “So instead, municipal services — from the police department to the schools — are largely funded through property taxes alone,” Pfeiffer said.
To address rising costs, Democratic gubernatorial nominee Rep. Mikie Sherrill has proposed expanding shared services among municipalities—for example by consolidating courts or school systems. However, Pfeiffer noted that such savings typically occur only on a case-by-case basis rather than across the entire state.
Pfeiffer also commented on alternative proposals like an alternating property tax rate: “You can’t give some people a lower rate than other people,” he said. “You have to assess everybody at the same standard.”
